California Solar Initiative Thermal Program (CSI-Thermal) Presented By: Nick Stimmel

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1 1 California Solar Initiative Thermal Program (CSI-Thermal) Presented By: Nick Stimmel

2 Agenda Program & Budget Overview Eligibility Application & Incentives Program Metrics Contact Information 2

3 Program & Budget Overview 3

4 Program Goals Significantly increase the size of the solar water heating (SWH) market in CA Energy Savings Natural Gas: Displace 585 million Therms over the 25 year life of the systems Electric: Displace million kilowatt hours (kwh) per year 16% reduction in the cost of SWH systems by 2018 Single-family Residential launch-may 2010 Commercial/Multi-family launch-october 2010 Reduce market barriers to SWH adoption, such as high permitting costs, lack of trained installers, lack of consumer knowledge and confidence in SWH technology 4

5 Program Administrators (PA) Pacific Gas and Electric Company: Gas and Electric Southern California Edison: Electric Southern California Gas Company: Gas California Center for Sustainable Energy (CCSE): For San Diego Gas and Electric Customers (only non utility PA) 5

6 Incentive Budget CSI-Thermal Program Elements Description Budget Natural Gas Incentives General Market $180,000,000 Low-Income $25,000,000 Electric Incentives Incentive budget shared with CSI Photovoltaic program and is a cap, not a set aside $100,800,000* *PGE and CCSE commercial electric incentive budgets exhausted due to CSI Photovoltaic program budget constraints 6

7 Eligibility 7

8 Customer Eligibility How does the customer heat their water? Natural gas water heating customers of: Pacific Gas & Electric Company Southern California Gas Company San Diego Gas & Electric Company Electric water heating customers of: Pacific Gas & Electric Company Southern California Edison San Diego Gas & Electric Company Propane water heating customers: currently not eligible 8

9 Contractor Eligibility Contractors must have an active A, B, C-4, C-36, or C-46 License with the California Contractor State License Board (CSLB) Must attend the one-day CSI-Thermal Program Workshop Offered monthly in all Program Administrator Territories Once completed, contractor is eligible program-wide Currently have 321 Eligible Contractors Contractor will complete incentive paperwork for the customer Customers can search eligible contractors at: 9

10 Equipment Eligibility Solar Rating and Certification Corporation (SRCC) A non-profit organization whose primary purpose is to provide authoritative performance ratings, certifications and standards for solar thermal products, with the intention of protecting and providing guidance to consumers, incentive providers, government, and the industry. -SRCC Website: Single-Family Residential Customers: must have SRCC OG-300 System Certification Multi-Family/Commercial Customers: SWH systems must have SRCC OG-100 Collector Certification 10

11 End-Use Eligibility Single-Family Residential: Solar heated water must be used in domestic hot water applications (food Preparation, sanitation, personal hygiene) Commercial/Multi-Family: Solar heated water must be directly consumed as opposed to using it as a medium to carry heat for some other end-use Not Eligible for CSI-Thermal: Pool/Spa heating Space Heating/Cooling* Combination Systems* Process loads where water is used indirectly or as a medium* *Potential for inclusion 11

12 Incentives and Application 12

13 Natural Gas Incentive table Steps decline as more projects are received and step budget allocations are fulfilled for each customer class Steps move independently by Customer Class and Program Administrator Step Customer Class $/ therm displaced Incentive Cap Total Program Budget Allocation PG&E Budget Allocation 1 Residential Commercial/Multifamily $12.82 $1,875 $500,000 $20 Million $30 Million 7.8 Million 11.7 Million 2 Residential Commercial/Multifamily $10.26 $1,500 $500,000 $18 Million $27 Million 7.02 Million Million 3 Residential Commercial/Multifamily $7.69 $1,125 $500,000 $18 Million $27 Million 7.02 Million Million 4 Residential Commercial/Multifamily $ $500,000 $16 Million $24 Million 6.24 Million 9.36 Million 13

14 Electric Incentive table Electric incentive steps change when natural gas steps change Step Customer Class $/kwh displaced Max Incentive 1 Residential Commercial/Multifamily 0.37 $ $250,000 2 Residential Commercial/Multifamily 0.30 $1,025 $250,000 3 Residential Commercial/Multifamily 0.22 $750 $250,000 4 Residential Commercial/Multifamily 0.14 $475 $250,000 Trigger Tracker: 14

15 Incentive Tracker Monitor Participation at As of June 27,

16 OG-300 (residential) Incentive Calculator 16

17 OG-100 (Commercial/Multi-family) Incentive Calculator 17

18 Application Submittal Applications completed at Documents may be submitted online or by mail Solar Contractor completes application for customer Commercial/Mutli-Familiy customers may reserve funds prior to installations Payments made to customer or any third party 18

19 Payments Residential and Small to Medium Business- One-time Lump Sum Payment: Based on estimated therm of kwh savings provided by the CSI-Thermal Calculator Paid after project is completed, approved, and inspected (if applicable) Large Commercial Customers- 70/30 True-Up Payment: Commercial/Multi-family calculator estimates therm or kwh savings. PA pays 70 percent of that incentive after Incentive Claim and Inspection (if applicable) are approved System is then metered/monitored for 12 consecutive months. PA pays the true-up incentive amount by subtracting the initial 70 percent incentive payment from the final metered incentive amount.* *Program will pay no more than 110% of estimated incentive Payments paid to Customer, Contractor, or Third Party 19

20 20 Program Metrics Source:

21 Applications Received CCSE PG&E SCE SCG Commercial/Multi-family Residential 21

22 Commercial/Multi-family Applications Coin-op Laundries, 1 Sit Down Restaurant, 4 Fast Food Restaurant, 2 Office Building, 1 Retirement/Nursing Home, 3 Mutli-Family, 66 22

23 Residential Application Volume Natural Gas vs. Electric Natural Gas Displacing, 50 Electric Displacing, 69 23

24 Percent of Cost Covered by Incentive (Statewide) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q Q Q Q Q Single-Family Residential Commercial/Multi- Family *Completed projects only 24

25 Real Life Example 63 Unit Apartment Complex in San Francisco Installed a 40 Collector System Reported System Cost = $139,909 Expected Annual Therm Savings (from CSI-Thermal Calculator) = 3,325 Therms CSI-Thermal Incentive = $42,627 Potential for 30% Federal Tax Credit Source: 25

26 26 Contact Information Nick Stimmel PG&E (415)

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